5/29/2012

Many would think by now that small business owners

When looking for working capital financing, you go to either a local credit union or bank and fill out the application for the loan. Afterwards, the loan officer asks you to wait here while he goes into another office and while you are waiting you are nervous about what he is going to tell you and minutes become hours. When the loan officer returns he may just give you good news and you can walk out the door as a happy camper. However, when that is not the case he may offer you the loan but at a much higher interest rate and that you will need to pull out more money, that you don't need, in order to be approved for the loan. This is the process most small business owners face when they go in to ask for working capital financing.

Many would think by now that small business owners have caught on to these loan officers and banks and simply see through their bluff. However that is not the case and situations like that happen almost every day to people, who are so loyal to their credit unions or banks they have done business with for decades, asking for a working capital line of credit to keep their small business above water. It may make one think where does that loan officer really go when he enters into another office while you stay outside? If he in there really trying to get you a better deal or is he simply getting excited about how much money he is going to milk you for?

It definitely sounds wrong, but it happens. A much better route would be to go online to a website that advertises financing for small business loans and approves credit for everyone. All you need to do is simply fill out an application and submit it to the website. After a couple days of the posting you will receive various offers from many different lenders that are actually better than the quotes you received from your bank. You will be able to borrow the amount you need and nothing extra and at an overall better term than offered by the bank you were so loyal to. Apparently when the loan officer went into that other office to supposedly get you the deal you needed was not good enough.

The point of all this is to encourage you to keep looking for that better offer even if your bank or credit union has seemed to give you a decent offer. It also gives you a better insight to what these loan officers are really telling you when they say "funds simply aren't available" or "that's not possible in these tough economic times". The money is definitely available you just have to be aware of other resources or be a little more firm with the loan officer. Strive for those desired terms and you will get them.

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